Category Archives: News

Chase credit card discontinues checking overdraft protection

chase bank logoChase credit card holders will no longer be able to use their card as overdraft protection for their Chase checking accounts starting August 26, 2016.

The overdraft protection feature was a handy way to avoid the Non-Sufficient Funds (NSF) fee of $34 Chase charges for bounced checks in linked checking accounts.

Chase’s announcement explains that overdrawn amounts on linked savings accounts will still be covered and will eliminate the $10 transfer fee.

The credit cards include:

The change applies only to customers who have Chase checking accounts and credit cards linked to them.

Contact Chase bank for alternatives methods to avoid the hassle of having checks bounce and be socked $34 for each withdrawal.

This also includes electronic payments via the internet, especially automatic recurring charges that you may have forgotten about.

Consider setting up a Chase savings account for automatic payments, since that will have overdraft protect without any transfer fee.

Google Credit Card

Google Credit CardWhile still in it’s pilot stages, Google will offer small businesses in the United States monthly interest-free business loans up $100,000 good only for Adword Purchases.

The Google card will be issued by Comenity Capital Bank and will feature an annual interest rate of 8.99% or 0.75% per month on balances not paid-in-full at the end of the billing cycle.

The card will

  • Charge no annual fee
  • Valid ONLY for Adwords purchases
  • Have no rewards benefits

The primary use will be to keep accurate track of Google Adword campaigns.

 

Win $10,000 Sweepstakes

You could win $10,000 by depositing your IRS refund in a Visa prepaid card.

Visa Prepaid CardThere are also 60 weekly winners of $25 each until April 16, 2012.

This is a limited-time offer good only until April 16, 2012: so the clock is ticking and get your card before time runs out to win your $10,000 prize.

People can also enter the contest, without having a Visa Prepaid Card, by manually sending entry forms through the mail.

To automatically enroll for your opportunity to win $10,000, get an eligible prepaid Visa card and make a purchase or payment with it from January 15th to April 30th, 2012.

Use your card online, over the phone or in stores where Visa is accepted.

The more you use your card, the more entries you’ll receive and the better your chances of getting that $10,000.

Details of winning the $10,000 are here.

Are Credit Card Rewards Taxable?

Pile of cashCitibank has sent out 1099 tax forms for 2011 to people who received over 24,000 points as an incentive for opening a checking or savings account.

Usually prizes, awards and the such, worth over $600, are reported to the IRS as miscellaneous income.

While the 1099’s were NOT sent out for reward points on credit cards, the recent mailings suggest cardholders might have to pay taxes on all their points sometime in the future, if and when the IRS changes its mind.

Citicard regards any promotion to open an account as a taxable “gift.”

A spokesperson said, “When a customer receives a gift for opening a bank account — whether cash, a toaster or airline miles — the value of that gift is generally treated as income and subject to reporting.”

The IRS currently views reward points on credit cards as a form of “rebate,” which is not considered income, but reduces the price the customer pays for his or her purchase.

As an example, when a customer opens a new Macy’s credit card, he or she gets up to $100 off their first bill on purchases made within 48 hours of opening the new account – the credit reduces the cost their initial statement.

However if Chase credits a new account holder 25,000 points, without even making a purchase, wouldn’t that be considered a gift since nothing was bought?

The IRS treats both promotions the same now as not being taxable.

Stay tuned folks, because the tax situation right now favors cardholders, but Congress and the IRS might want to plug this tax “loophole” in the future.